The Cincinnati Board of Education said it approved 40 administrative layoffs and outlined plans for an agreement to rehire Cincinnati Public Schools Superintendent Mary Ronan on Monday.

"We are losing valuable employees," Ronan said.

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According to the agreement, Ronan will be rehired for three more years, but she will only get about half of her current salary.

"We believe this agreement keeps proven leadership at the helm, while saving the district money during fiscally challenging times," said Board President Eve Bolton.

Ronan, who currently earns $189,000, said she will retire when her current contract expires at the end of July 2012. According to the contract drafter, Ronan will then be re-employed for $99,000 yearly starting on August 1, 2012 and ending on July 31, 2015.

"With a deep funding gap to close in next year's budget and a need to move forward with more rigorous academic standards, our schools and community need Ronan's experience and successful track record. This agreement accomplishes that while saving teacher positions," Bolton said.

According to an Ohio News Organization survey published in 2010, about 27 percent of all superintendents in the state's major urban school districts and surrounding counties have been re-employed as superintendents following retirement.

"To our knowledge, Mary (Ronan) is the only superintendent willing to return for half her salary. This shows her commitment to our children and the future of this district," Bolton said.

Under Ronan's leadership, the board said CPS became the highest rated major urban district in Ohio, earning the state's Effective rating for two consecutive years.

The board said the layoffs and salary cut are efforts to close a gap of $43 million in next year's CPS budget.

Ronan said the non-renewals of administrators "painful but necessary."

"We have been fiscally responsible by closing schools, eliminating more than 1,300 positions and reorganizing services over the last decade. But other governments have balanced their own budgets on our students' backs by cutting resources to our schools and district," Ronan said.

The superintendent said additional reductions to staff and services are expected as the district continues to work to balance its 2012-2013 General Fund budget by the end of June.